ased on the dividend growth model. If you exepect the market rate of return to inclease across the board on all equity securities, the you should also expect, what?

Selling shares of stock for more than you originally paid is called modern portfolio theory. leverage. current income. capital gain.

In the Gordon Growth (dividend discount) Model, the growth rate is assumed to be the required return on equity. a. proportional to O b. Blank O c. equal to O d. greater than O e. less than

6. What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would select (do not include names of mutual funds or stocks, just overall types of investments.)?

The beta risk of a share reflects the sensitivity of cash flow, earnings, and the share price to what sort of movements? Select one: a. Industry-wide market movements. b. Capital market movements. c. Economy-wide market movements. d. All of these.

Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R).  And what are the assumptions and the limitations of this model? What can be said about the dividend growth model? Similarly what can be said about the capital asset pricing model?

How will the change in required return influence the price of a stock? How will the dividend growth rate influence the price of a stock?

Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R).  And what are the assumptions and the limitations of this model? Is it the PEG ratio or not??

Indicate whether the following statements are true or false. If the statementis false, explain why.f. If a firm follows a residual dividend policy then, holding all else constant, its dividend payout will tend to rise whenever the firm’s investment opportunities improve.

You are thinking about investing in either X corp, or Y corp. Based on the following market measures, which company could be the best option based on possible return of investment?   x y Price/Earnings Ratio 10.39 12.27 Earnings per Common Share 3.5 5.4 Divident Payout .464 .320